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Answers (28)
- Sedat Celik, "Sedat Celik"
- Contributions:9
The lender will accept the sale. You will not be able to sell your house to any of your relatives. The lender will ask you to sign a paper stating that. Try to sell your home in the open market.
- Dorothy Engel & Stella Logan, "Dorothy and Stella"
- Contributions:14
Dear Emy7297, Short sales can not be purchased by a family member. There is legal paperwork that is signed in escrow stating there is no relationship between seller and buyer. Call your lender and see about a loan mod. Some lenders are helpful if you are not behind on your payments. Best of luck with a tuff situation.
Dorothy Engel
Dorothy Engel
- Reallyfedup
- Contributions:815
Sorry Ratface, years have nothing to do with it. If a lender is involved, it has to do with arms length transaction.
- ratrace_1
- Contributions:29
you need to wait 2 years.
- Caroline Choi, "Caroline Choi"
- Contributions:98
Hi Emy7297, in a short sale transaction, an arms-length affidavit must be signed in order to ensure there is no relation from the seller to buyer. As you can imagine, there has been a lot of fraud where buyers who are related to the seller purchase the house from him or her, and give it back at the bank's loss. The arms-length affidavit is designed to prevent that sort of situation. My advice would be to try to do a loan mod, or sell the home to a buyer who is not related. Good luck!
- Dorothy Engel & Stella Logan, "Dorothy and Stella"
- Contributions:14
You can sell your house to whomever you want. . . The problem is your LENDER WILL PROBABLY NOT APPROVE a short sale to a relative or close friend for obvious reasons. If they are taking less money than you owe on a loan, they will not allow you to benefit from that arrangement.
- Georgina OBryan, "GOBryan1"
- Contributions:483
You can not profit or benefit from a short sale so on an average, no, it is usually not an acceptable option since they will assume that you're doing it to simply live in the home at a lower amount than what you originally purchased the home for.
They have thought of the possible scams people will do to benefit or get out of paying what they originally agreed to.
They have thought of the possible scams people will do to benefit or get out of paying what they originally agreed to.
- Joy Rosik, "Joy Rosik"
- Contributions:51
Banks specifically want to know if there is a relationship between seller and buyer - this is not going to be an option. If this were possible, many people would love to choose this option, but unfortunately, it isn't.
- ocalaflhomesforsale
- Contributions:7
If I were go to short sell my [link removed by moderator] to a relative I would be careful. Banks don't really like these type of transactions unless everything is disclosed up front. Talk to the banks mitigator taking care of the short sale and discuss your options openly. But regardless get everything in writing and seek the help of an attorney.
- Carol Neu, "cneure"
- Contributions:64
Usually your lender wants to see the sale go to someone you have no affiliation with, called a non arms length transaction. Relatives are pretty easy to ID, friends a little more of a grey area.
Good luck
Good luck
- Victor Gurrola, "Victor T. Gurrola"
- Contributions:1190
It's really up to the lender but it's unlikely. They generally want an arm's length transaction, especially for short sales.
- Matt Baker, "bakermortgageteam"
- Contributions:25
Simply, check with the lender, but I would say no. It would be anon arms length transaction and lenders are very carfeul on those type of loans.
- Kevin Vitali, "MerrimackValleyHomes"
- Contributions:68
Many short sale transaction have an affidavit signed saying it is an arms length transaction. Selling to a family member would probably not work.
Though it is not impossible and all of that can be negotiated with the bank. have an attorney contact the bank to see if the details can be worked out.
Though it is not impossible and all of that can be negotiated with the bank. have an attorney contact the bank to see if the details can be worked out.
- Don` Bell, "D Bell"
- Contributions:20
Cut the rederic. It is up to the lender and to your moms ability to buy.
- Mark LeMenager
- Contributions:1716
You say that your "mom wants to pruichase the home". Pretty simple really, all she has to do is pay enough to retire all the liens. Why do you need a short sale?
- David Atherton, "dwath1"
- Contributions:6
Arms length issues are true. I supposed if you are going to have to sign a promissary note for the shortfall, it may not be that big a deal. You have to ask the question. Dave
- Matt Partrich, "myportlandrealtor"
- Contributions:32
Most of the time lenders will not allow a "Non-arms length" transaction on a short sale. It is important that you disclose the relationship to the lender and get their direct approval. Omission of the relationship could result in a fraud charge against you. Be very careful with this.
- Peggy Lyn Speicher and Team, "Peggy Lyn Speicher"
- Contributions:299
Be safe. Simply call your lender and discuss this option with them.
- Tracey Schmitt, "Tracey Schmitt"
- Contributions:2
Why not try to claim your hardship towards the risk of loss and do a loan modification?
If you have the capability to buy another house, I don't think a bank will agree to a short sale even if it is arm's length.
Corporations tends to favor bottom line and deferral of loss over ease of transactions.
Take care, and I hope things will take a better turn for you.
- wetdawgs
- Contributions:26800
"i can let this house go and buy another house in the same neighborhood" You are not eligible for a mortgage for at least two years after a short sale. If you are thinking of buying and dumping, be aware that "buy and dump" is also mortgage fraud.
Why doesn't your mother simply help you pay your current mortgage?
Why doesn't your mother simply help you pay your current mortgage?
- workabee
- Contributions:1030
No. Don't try it or you'll be hit with loan fraud. Instead buy the house down the street, have your mom co sign and then let your first underwater house go. It's a safer bet.
- Linda Strasberg, "L Strasberg"
- Contributions:2315
It sounds like your folks are looking to buy a house
- Emy7297
- Contributions:2
Regarding my question: can i short sale my house to my mom? Thank you for your input. I have always taken care of my parents. My father developed bladder cancer about 6 mo after i bought my house in 2007. After fighting it for almost a year, he passed away while in hospice at my home. My mother bought a home near me so i could take care of her needs. she doesn't drive. i lost my job shortly after my father passed. now i can't afford the mortgage. my mom wants to purchase the home so i can stay living close to her . i can let this house go and buy another house in the same neighborhood. my neighbors house is up for sale too. so i don't have to short sale my home to my mom, i just thought it would make things easier on the bank and my family.
- Flo Foote, "flofoote"
- Contributions:21
I agree with Michael and Donna. It doesn't smell right and would be unlikely to be approved by the banks.
- Donna Hazelwood
- Contributions:9
I would tread very, very carefully on this one...After the mortgage industry fiasco of the last several years, if the banks even think there is something 'funny' going on, they (and the Feds.), can and will investigate all parties involved, and if they find evidence of mortgage fraud, everyone involved will go down. In my city, Orlando, a couple of months ago there was a massive investigation and subsequent arrests of mortgage lenders, real estate professionals, & home buyers and sellers once the investigators found rampant fraud involved...
I recently turned down a listing when I was informed by the seller that there would be some 'creative' switching going around after the sale. Like Michael below says, consult an experienced real estate attorney, heavy emphasis on experienced. Within the last couple of years, many attorneys who were previously specializing in other areas of law have switched to 'real estate law'...Good luck!
I recently turned down a listing when I was informed by the seller that there would be some 'creative' switching going around after the sale. Like Michael below says, consult an experienced real estate attorney, heavy emphasis on experienced. Within the last couple of years, many attorneys who were previously specializing in other areas of law have switched to 'real estate law'...Good luck!
- wetdawgs
- Contributions:26800
Probably not. Check with your lender.
- Michael Emery, "MikeEmery"
- Contributions:7294
You would have to have the approval of the lender(s) in order to do this kind of transaction. Most require an 'arms length' relationship in order to avoid any semblance of fraud.
You should probably also check with an attorney as well as tax professional to ensure there are no legal or tax ramifications.
You should probably also check with an attorney as well as tax professional to ensure there are no legal or tax ramifications.
Can I short sale my house to my mom?
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